Oct 8, 2020
Thank you for tuning in to this episode of the Rational
Reminder. We start this show with some great news about the comment
section and our migration to Discourse. Having an open dialogue has
always been crucial for us—it has even led to our latest hire—so we
felt it was time to add more structure to it. We then talk about
mortgage rates and why so many people do not know that it is
possible to negotiate them down even further. There is often a big
gap between what is publicly advertised and what you can actually
get, so it’s worth shopping around. Following this, we touch on
IPOs, SPACs, and why some are saying it is similar to 1999. In the
heart of this discussion, we unpack the relationship between the US
election and stock market returns. If you are like Ben, perhaps you
thought there is not much material difference, and while over the
short-term there is not, the election cycle data is truly
astonishing. We find out the fascinating explanation of why there
are higher excess returns under Democratic leadership, and it is
probably not what you think! Moving on, we chat with our newest
advisor Jordan Tarasoff where he sheds light on his previous
employment at a sales and product-centric advisory firm. We talk
about how this affects both the customer and the advisor, and
Jordan ends with talking about his positive time at PWL so far. To
hear more, be sure to tune in today!
Key Points From This Episode:
- Some great news about migrating the comment section to
- The new PWL team member we are welcoming and our shop opening.
- Why Cameron recommends everyone watch The Social
- Recommended books: Open and Succession Planning
for Financial Advisors. [0:08:27.3]
- Results from a survey around people’s knowledge of mortgage
- Some of the reasons that mortgages can be tricky.
- What is happening with IPOs and why it is being likened to
- Insights from Hendrick Bessembinder about how investors should
use his findings to structure their portfolios.
- A follow up about safe withdrawal rates we touched on a while
- Today’s investment topic: The US election and stock market
relationship and Ben’s assumptions prior to research.
- Are returns affected by US elections? Hear Ben’s findings.
- The relationship between beliefs and optimism in the market.
- Unpacking the link between volatility and the election.
- Looking long-term at the stock market through election cycles.
- How the timing of a Democratic president being elected results
in positive excess returns. [0:39:26.3]
- The short-term effects of the election are minimal compared to
changes over an entire election cycle.
- Get to know Jordan Tarasoff, PWL’s newest advisor, and his
previous experience. [0:47:01.3]
- Some of the conflicts and tension Jordan experienced in his
former advisory role. [0:49:33.3]
- What to keep in mind about adding segregated funds to your
- Why you should not put a great deal of money into life
- The flawed hiring model that Jordan experienced at his former
- Jordan’s advice for anyone with a product-centric financial
- What PWL does better, according to Jordan.
- Bad advice of the week! [1:08:57.3]